UGC for Growth Marketing: Complete Guide

Mai Mejias17 July

The power and reach of user-generated content (UGC) in Growth Marketing is undeniable. In a digital ecosystem saturated with advertisements and brand messages, UGC shines as a beacon of authenticity and trust.

This article is designed to take you on a deep journey into the world of UGC, revealing its meaning, its benefits, and (most importantly) how you can leverage it to boost your marketing strategy.

We are at a point where almost everyone uses social media and instant messaging (e.g., WhatsApp) daily. It is in this context that UGC was born, a content format that has become a powerful tool because it allows brands to connect with their audiences in a more authentic way.

Next, we will explore how user-generated content goes beyond reviews and testimonials. You will discover why UGC is an essential part of any modern marketing strategy and how it can promote loyalty, increase customer trust, and reduce advertising costs.

Before we continue, we need to make an important clarification:

As mentioned earlier, UGC was born from users and for users. Therefore, its nature is not advertising but informational. However, this does not mean that brands cannot take advantage of this format. The role brands have in this context is to ride the trend and co-create advertising content that has the style of UGC, leveraging the freshness of the format and the inclusion of Content Creators.

Throughout this article, we will break down the key strategies and tactics for creating high-quality UGC and show you how to effectively implement this content in your marketing campaigns.

Ready to dive into the exciting world of User Generated Content and unlock its potential in Growth Marketing?

What is User Generated Content?

In this first chapter, we will explore in-depth what UGC means and how it has evolved over time. From simple product reviews to exciting TikTok videos, UGC encompasses a wide range of content created and shared by real people.

Let’s start by deciphering this acronym: UGC. It stands for User Generated Content. Its meaning is as clear as its name. UGC refers to any type of digital content, whether images, videos, reviews, or even social media posts, that are created and shared by ordinary individuals, not by the brands themselves.

And here arises a big question. If UGC is content generated by the user, what role do I have as a brand?

There are at least two answers to this question. On one hand, the brand can encourage users to generate this kind of content, creating spaces for it to happen, giving prizes to users who do so, etc. On the other hand, the brand can establish itself as a co-creator of this content, leveraging the format and hiring Content Creators to help produce UGC videos for advertising purposes.

Benefits and Importance of UGC in Modern Marketing

User Generated Content (UGC) is not just a passing trend; it is a transformative force in the marketing world. Why? Because it offers a series of benefits and opportunities that brands cannot afford to ignore.

As mentioned before, but it’s important to reinforce a key aspect of UGC: its authenticity. When consumers see other real consumers sharing their experiences with a product or service, they perceive a genuineness that simply cannot be obtained in traditional advertisements. This authenticity translates into trust, and trust is an invaluable asset in the marketing world.

UGC is not only authentic; it is also highly persuasive. Positive reviews, testimonial videos, and enthusiastic user posts can significantly influence purchasing decisions. Consumers trust the opinions of their peers, and when they see that others have had positive experiences, they are more inclined to take action.

Moreover, UGC fosters engagement. Users feel more involved when they have the opportunity to contribute their own content, leading to increased interaction with the brand.

Lastly, we cannot overlook one of the most tangible benefits: cost reduction. Compared to traditional advertising strategies that often require considerable investments in content creation and promotion, UGC is a cost-effective option. When users themselves create content, brands can save significantly on production costs.

Additionally, distributing UGC through digital platforms is often more economical than conventional advertising tactics. This means brands can achieve greater reach at a fraction of the cost, adding a compelling financial appeal to UGC.

UGC is not just a tactic; it is a comprehensive strategy for success. Brands that recognize the importance of incorporating UGC into their marketing efforts are in a strong position to build more robust relationships with their customers and increase their market influence.

In the upcoming chapters, we will explore how to effectively implement UGC in your marketing strategy, unlocking its full potential to drive your brand’s growth.

Strategies for Creating Quality UGC

1. Spontaneous Creativity vs. High-Value Production: In the world of UGC, authenticity is key. Overproduced videos can feel like traditional ads, losing the genuine touch that attracts viewers. Instead of focusing on high-value productions, UGC creators should embrace the spontaneous creativity that characterizes this type of content.
2. Surprise and Connect with Your Audience: Creators should find unique ways to engage their audience, whether through an unexpected twist in the narrative, humor, or the most natural way. This emotional connection drives viewer engagement and participation.
3. The Power of the First Seconds: In the era of limited attention spans, the first seconds (or hook) of a UGC video are crucial. Creators must immediately grab the audience’s attention with a compelling hook. This ensures users continue watching the content instead of scrolling away.
4. Simplicity and Focus on a Single Goal: Effective UGC focuses on a clear goal. Creators should avoid dispersing the audience’s attention with multiple calls to action (CTA) or complicated messages. Keeping it simple and focusing on a single goal enhances the clarity and effectiveness of the content.

Collaboration with Content Creators

First and foremost, it is essential to understand the distinction between an influencer and a content creator in the context of UGC.

Influencers typically have a large following, and their main strength lies in their ability to influence their audience’s purchasing decisions. Technically speaking, working with influencers would be categorized as a collab, not UGC. However, it is possible to replicate the UGC format by leveraging influencers.

Content creators, on the other hand, focus on consistently producing authentic and valuable content, regardless of their audience size.

In a UGC strategy, the choice between working with an influencer or a content creator depends on several factors, such as campaign goals and target audience. Influencers can reach large audiences, while content creators can offer authenticity and engagement.

Working with multiple content creators may yield a better RoAS than working with a macro-influencer with millions of followers. It all depends on the characteristics of their followers, the themes they usually cover in their videos, and the brand’s objectives.

Platforms and Formats for UGC

To make the most of User Generated Content (UGC) in your digital advertising strategy, it’s essential to know the right platforms and formats. In this chapter, we’ll explore the main options available and how they can enhance your strategy.

TikTok: The Digital Habitat for UGC

TikTok has established itself as an epicenter for UGC. The platform offers a short, vertical video format that perfectly suits user creativity. Through TikTok Ads, brands can leverage this massive and highly engaged audience to promote their products and services.

TikTok Ads campaigns can be highly effective in reaching a diverse audience and capitalizing on emerging trends.

Reels: Meta Joins the Trend

Meta (formerly Facebook) launched Reels in response to TikTok’s growing popularity. Reels offers creators the ability to produce short, creative videos that can reach a wide audience on Meta’s platform.

YouTube Shorts: Beyond Long Videos

YouTube Shorts is YouTube’s response to the rise of short videos. This platform allows creators and brands to produce UGC content in a short, vertical format that is showcased in a special section of the platform.

YouTube Shorts offers the advantage of leveraging YouTube’s immense audience and can be a solid option for brands looking to diversify their UGC strategy, especially if the brand already has a presence on YouTube.

Spotify: The New Frontier of UGC

Although Spotify is primarily known as a music streaming platform, it has been exploring new opportunities in the UGC realm. In select markets such as Brazil and Mexico, Spotify has begun to evaluate incorporating UGC content on its platform. This could open new avenues for brands to connect with their audience through music and audio. As these opportunities develop, brands should stay attuned to how they can integrate UGC into their advertising strategy on Spotify.

Impact of UGC on Performance Marketing Strategies

User Generated Content (UGC) is a powerful tool that can significantly impact performance marketing strategies. Here, we will analyze how UGC can improve campaign results and why proper setup and budgeting are key elements for success.

Improvement in Campaign Results

One of the most notable advantages of UGC is its ability to boost campaign results. Numerous studies and success stories have shown that campaigns incorporating user-generated content tend to outperform those that do not. This is partly due to the authenticity of UGC, which resonates with audiences in a way that traditional ads often cannot match.

Engagement rates are typically higher when UGC is used, meaning more people interact with the ads and brand content. Additionally, UGC tends to be shared more frequently on social media, further amplifying its reach. This organic interaction and diffusion can lead to a noticeable increase in brand visibility and, ultimately, conversions and sales.

When we compare the effectiveness of User Generated Content with strategies lacking this format, the results are revealing. By incorporating UGC videos into communication, we have seen substantial improvements in numerous client projects. For instance, in the financial sector, working with banks on objectives like account openings, credit card placements, or generating savings account deposits, we have recorded a significant increase in RoAS. On several occasions, we have tripled the results with the same investment and even achieved cost reductions of up to 70% thanks to an effective UGC strategy, comparing the performance of these versus other video and static content pieces.

A standout example of this was with one of our clients, whose name we will not disclose for privacy reasons. In their case, the goal was to drive app downloads, encourage registrations, and obtain the first deposit in the electronic wallet. Here, UGC demonstrated its power by significantly reducing the cost per acquisition (CPA) by 18%, resulting in substantial resource savings.

As marketing professionals, we know that an 18% improvement in this indicator can make the difference in meeting goals and achieving results.

These examples highlight the tangible and cost-effective impact of UGC on digital advertising strategies, emphasizing its crucial role in brand and business growth.

Importance of Configuration and Budget

Despite the benefits of UGC, its success is not automatic. Proper configuration and budgeting are crucial to maximizing this strategy. It is important to allocate sufficient budget so that UGC campaigns can reach the right audience and generate significant results. Campaigns with insufficient budgets may not have the desired impact and can leave potential untapped.

Campaign configuration is also key. This includes selecting the right platform, targeting the correct audience, and accurately measuring results. UGC campaigns should be designed with a clear objective in mind and a solid strategy to achieve it. Incorrect configuration can lead to inefficient spending and disappointing results.

Conclusion and Closing

In this Performance Trends, we have explored the exciting world of User Generated Content (UGC) and its impact on Growth Marketing. We have broken down the key concepts behind UGC, from its definition to its importance in the modern marketing landscape.

We have delved into strategies for creating quality UGC content and how to collaborate with content creators to boost your campaigns. Additionally, we have examined the most relevant platforms and formats for UGC, highlighting their potential in TikTok Ads, Reels, YouTube Shorts, and emerging opportunities on Spotify.